CAG Report On Delhi Liquor Policy: ‘Rs 2,026 Crore Loss To Exchequer, Licence Norms Flouted’

The CAG put out its report on the excise policy case of the Delhi government and flagged several “lapses” in the policy.

Former Delhi CM Arvind Kejriwal (PTI Image)

A Comptroller and Auditor General (CAG) report on the now-scrapped excise policy of the Delhi government flagged several “lapses” in the policy and claimed Rs 2,026 crore loss to the exchequer. This figure was put out for the first time to show the impact of the alleged liquor scam.

The report claimed that some bidders were running in losses, yet given licenses by the Arvind Kejriwal administration in the national capital.

CAG Report Points To ‘Lapses’ In Excise Policy

The CAG report highlighted significant lapses in the implementation of the excise policy, leading to a loss of approximately Rs 2,026 crores to the government. It said that the common man bore the cost while the AAP leaders “got kickbacks”.

The report further claimed that Manish Sisodia, who then led the excise department, and his group of ministers “ignored” the recommendations of the expert panel. It also said that there were violations in the issuance of licenses for liquor shops and the violators were not penalised “deliberately”.

The CAG report also said that many key decisions were taken arbitrarily without with approval of the cabinet or the Delhi LG.

Highlights From CAG Report

  • It reveals that expert panel recommendations were ignored by group of Ministers led by Manish Sisodia.
  • All entities were allowed to bid despite complaints.
  • The financial condition of bidders was not red-flagged before issuing licenses.
  • One entity showed loss, yet the license was renewed.
  • Violations in issuance of licenses.
  • Violators were deliberately not penalised.
  • Lack of transparency in pricing.
  • Cabinet approval or LG approval was not taken on many key decisions.
  • Excise rules should have been placed before the legislative assembly for ratification but they were not.

Breakdown of Rs 2,026 Crore Loss To Govt

Detailing the loss of Rs 2,026 crore to the Delhi government treasury, the CAG report said that some retailers surrendered their licenses before the policy expired, and the government did not re-tender them which led to the loss of Rs 890 crores.

It said that the government made exemptions for zonal licensees, which caused a loss of Rs 941 crores.

The then-Kejriwal government allegedly waived license fee of Rs 144 crores due to COVID-19 restrictions, which led to further revenue loss, despite clear terms in the tender agreement stating no provision for force majeure.

The incorrect collection of security deposits resulted in a loss of Rs 27 crores, the report said.

BJP Slams Kejriwal

Union Home Minister Amit Shah launched an attack on Kejriwal over the report and said while Kejriwal leads his life in “luxury at the Sheesh Mahal”, many in Delhi are forced to live in slums.

“Due to the failure of Arvind Kejriwal, who lives in luxury at the Sheesh Mahal funded by the people of Delhi, many are forced to live in filthy and dilapidated slums. It is the Modi government that is fulfilling the dreams of these people for a dignified life and permanent homes. Today, at the ‘Slum Dweller’s Conference,’ slum residents will declare the end of Arvind Kejriwal’s ‘fraudulent rule’,” Shah posted on X.

Union Minister and BJP chief JP Nadda slammed Arvind Kejriwal over the CAG report and said that it exposes him and his party ahead of the elections.

Source : https://www.news18.com/india/some-bidders-in-losses-yet-got-license-cag-report-on-kejriwals-excise-policy-details-9185157.html

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